Oil Updates — crude down on weak economic data, US Fed chief’s speech

Inflation in the Gulf Cooperation Council (GCC) countries remains lower than global and Middle Eastern counterparts, with factors such as reduced food costs and declining energy prices driving the gradual deceleration, according to an analysis by Kamco Invest. However, inflation in the housing sector was felt in the GCC countries, with notable increases in Saudi Arabia, Kuwait, and Dubai. The report also highlighted declining inflation in the education sector in Saudi Arabia and a marginal uptick in inflation in Bahrain and Oman.

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8/23/2023

Jadwa Investment acquires 35% stake in Kuwaiti perfumer Gissah

Saudi Arabia's Jadwa Investment has acquired a 35% stake in Kuwaiti fragrance company Gissah Perfumes through its private equity arm, Jadwa Retail Opportunities Fund. The acquisition aims to support Gissah's growth and prepare the company for a potential listing on the Saudi Stock Exchange. The timeline for the listing and the value of the investment have not been disclosed. Inflation rates in the Gulf Cooperation Council (GCC) countries remain lower than global averages, with declining food costs, energy prices, and dampened global demand contributing to the trend. However, inflation in the housing sector has been felt mainly in the GCC countries, with notable year-on-year growth in Saudi Arabia and Kuwait. In contrast, communication and education sectors have experienced declining inflation rates in most GCC countries. The Tadawul All Share Index in Saudi Arabia experienced a slight decline, while the parallel market Nomu saw gains in closing for the day. The MSCI Tadawul Index also slightly dropped. The best-performing stock on the main index was Salama Cooperative Insurance Co., while the worst performer was AL Maather REIT Fund. On the parallel market, Mayar Holding Co. experienced significant growth. India is expected to ban sugar exports for the upcoming season due to a lack of rain that has reduced cane yields. This would be the first time in seven years that the country has halted sugar exports. The absence of India from the global market could increase benchmark prices and trigger concerns about further inflation in global food markets. Africa is predicted to lead the next phase of global economic growth, with an increasing focus on economic collaboration among BRICS member countries. Intra-BRICS trade has expanded over the past decade, and Africa is seen as the next wave of global growth due to its younger generation, mineral reserves, and other resources.

8/26/2023

Short-term inflation stays above 25pc

Short-term inflation in Pakistan increased by 25.34% on a year-on-year basis due to a surge in prices of kitchen items, although it decelerated from the previous week's rate of increase.

9/13/2023

Inflation Report Shows Signs of Reacceleration, Adding Pressure on Fed

The Consumer Price Index (CPI) for this month shows that core CPI and all items CPI were slightly above expectations and accelerating, with the primary contributors to the acceleration being core services ex housing and energy, which may be a concern for the Fed. Additionally, owner's equivalent rent was a significant positive contributor to the monthly change in CPI, while used cars and trucks had a negative impact. There is potential for a re-acceleration of inflation, which could have negative implications for equity markets.

9/16/2023

High Food and Energy Costs Keep Inflation in Pakistan Elevated at 26%

The short-term inflation in Pakistan increased by 26.25% due to a rise in the retail price of vegetables, particularly tomatoes and onions, caused by the closure of the Torkham border with Afghanistan.

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Posted 8/24/2023, 8:13:36 AM